Alibaba Group completes offering of HK$12.023 billion zero coupon exchangeable bonds

Alibaba Group completes offering of HK$12.023 billion zero coupon exchangeable bonds

Alibaba Group Holding Limited (NYSE: BABA, HKEX: 9988) has successfully completed the pricing of its private offering of HK$12.023 billion aggregate principal amount of Zero Coupon Exchangeable Bonds due 2032. The bonds, issued to certain non-U.S. persons in offshore transactions outside the United States, were priced by reference to the ordinary shares of Alibaba Health Information Technology Limited (AH Shares) listed on The Stock Exchange of Hong Kong Limited (HKEX: 00241) [1].

The bonds, which are unsecured and unsubordinated obligations of Alibaba Group, will not bear regular interest and will mature on July 9, 2032, unless redeemed, exchanged, or purchased in accordance with their terms prior to that date. Holders of the bonds may exchange all or any portion of the bonds at their option at any time on or after the 41st day following the issue date of the bonds to, and including, the close of business on the fifth scheduled trading day immediately preceding the maturity date of the bonds [1].

The initial exchange ratio of the bonds is approximately 160,513.6 AH Shares per HK$1,000,000 principal amount of bonds, which is equivalent to an initial exchange price of HK$6.23 per AH Share. This represents a premium of 48% over the per-share price in the Delta Placement, which was HK$4.21 per AH Share [1].

Alibaba Group expects to use the net proceeds from the bond offering for general corporate purposes, including investments to support the development of its Cloud infrastructure and international commerce businesses. The bonds are expected to be listed on the Vienna MTF operated by the Vienna Stock Exchange within 60 days after closing of the bond offering [1].

The bond offering is subject to customary closing conditions and is expected to close on July 9, 2025. Alibaba Group estimates that the net proceeds from the bond offering will be approximately HK$11.9 billion, after deducting bookrunners' commissions and estimated offering expenses payable by the Company [1].

References:
[1] https://www.morningstar.com/news/business-wire/20250703907178/alibaba-group-prices-offering-of-hk12023-billion-of-zero-coupon-exchangeable-bonds